Southwest posts loss on buyouts, hedging

RedDogC130

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SWA 3rd Qtr results

Southwest Airlines (NYSE:LUV - News) reported a third-quarter net loss on Thursday on charges for its employee buyout program and the shrinking value of its fuel hedge portfolio.
The U.S. discount carrier said its net loss had narrowed to $16 million, or 2 cents per share, from $120 million, or 16 cents per share, a year earlier.
During the quarter, Southwest recorded charges of $27 million for the buyout program and $12 million for a portion of its fuel hedge portfolio.
Excluding these one-time items, the airline reported a profit of 3 cents per share.
Revenue for the third quarter fell 7.8 percent to $2.7 billion.

Excluding special items, third quarter 2009 net income was $23 million, or $.03 per diluted share, compared to $69 million, or $.09 per diluted share, for third quarter 2008. The third quarter 2009 net income, excluding special items, exceeded Thomson's First Call's mean estimate of $.02 per diluted share.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated: "I am extremely proud of our Southwest Employees. To produce a profit, excluding special items, in this environment is a remarkable accomplishment. Sixty days ago, even a modest profit seemed unattainable. Despite the continuation of a depressed economy, our People fought hard, and have staged an impressive revenue recovery from where we were in June. Our third quarter 2009 unit revenues declined 2.2 percent from a year ago, a substantial improvement from the six percent year-over-year decline experienced in second quarter. It is a true testament to their Warrior Spirits during these most challenging of times.
 
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Colonel Savage

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"...It is a true testament to their Warrior Spirits during these most challenging of times."

YGTBSM.
 

GuppyWN

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You know what? I'm all for making a "profit" but if you've got to do math in public to explain how you made a profit then you're not doing as good as you could/should/were.

Gup
 

MCDU

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SWA is leaving alot of money on the table by not charging for bags. Everyone else is doing it.

M
 

Whataburger

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SWA is leaving alot of money on the table by not charging for bags. Everyone else is doing it.

M
Very true, but we've accomplished what we have due to not doing what everyone else is doing.

Just like running from a bear, we just can't suck the worst.
 

N1atEcon

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SWA is leaving alot of money on the table by not charging for bags. Everyone else is doing it.
How did that whole "charging for sodas" deal for for you all? Maybe we should try that too and really piss people off.
 

jonjuan

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SWA is leaving alot of money on the table by not charging for bags. Everyone else is doing it.

M
WN loads are increasing and decreasing everywhere else in part due to the lack of bag fees.
 
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RE:last 2 post. ^^^ wtf? huh?
 

johnboy99

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WN loads are increasing and decreasing everywhere else in part due to the lack of bag fees.
Can you please translate this in English please so the rest of us can understand what you are saying???
 

roughneck

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translation: We are increasing the number of southwest passengers and you guys are losing passengers. they are coming to us because we don't charge bag fees.

When things turn around, they will stay with us. (In theory atleast)
 

Homer Jay

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Homer Jay

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Read the second comment down in the article you posted.
That means nothing. One guy? Did you look at the graphs? I have nothing against Southwest at all. You have a great product but I think it's only a matter of time before you guys start doing the same. The only questions is, how much will it cost to check a Hefty garbage bag? :D
 

Colonel Savage

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That's a goot one!
 

Kharma Police

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Volasl

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Southwest does charge for bags. They charge for the 3rd and any that are over weight. Gary Kelly also stated on CNBC this morning that the policy could always change in the future.
 

generaltso

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SWA will add bag fees... I guarantee it. Also loads everywhere are very high.
 

RedDogC130

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I will take a loss of 16 million after special items over the next couple of reports coming in the next few days......say what you want....all airlines are bleeding now and the first to lose all their blood will be gone. I hope someone goes because it will be good for the industry as a whole....anyone saying otherwise can't see the big picture.....I hope it is not my airline and you probably hope it is not yours.....It will suck for the empoyees but the industry will turn around because all those passengers will fly someone else who then can make money.
 

spacecadet1

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That means nothing. One guy? Did you look at the graphs? I have nothing against Southwest at all. You have a great product but I think it's only a matter of time before you guys start doing the same. The only questions is, how much will it cost to check a Hefty garbage bag? :D
Thanks for the laugh! I'm thinking Jethro and Ellie May. But to SW's credit, they are a survivor. The aren't immune to the industry's problems as a whole, but they have figured out the part about taking care of the employees first (something most of the others haven't figured out yet; not taught in Harvard MBA school).
 
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